Christie was trying to barge through to third place on the penultimate lap of the competition when she appeared to catch Canadian Kim Boudin and toppled to the ice.
It was a further setback for Christie, who suffered a triple disqualification nightmare at the Sochi Olympics four years ago.
Christie was awarded fourth place in the race after home favourite Choi Minjeong was disqualified, with Italy's Arianna Fontana taking gold, Holland's Yara van Kerkhof silver and Boudin being upgraded to a surprise bronze.
The 27-year-old Scot had burst through her quarter-final heat when the action resumed on Tuesday but was forced to rely on a photo-finish to squeeze through her semi-final in second place.
Her semi-final struggle meant Christie had to start the final in the unfavourable fourth lane and she paid the price, although she will get her second chance in the 1,500m on Saturday.
Christie told the BBC: "Just in my feelings, I was knocked over. I didn't fall on my own.
"When there's five people in the final, it doesn't given you any benefit when someone gets a penalty.
"It's tough. I worked so hard for the 500 and it's just been taken away from me.
"Even in the semi-final I got crashed in and ended up in lane four.
"I know it's short-track and I know I'm supposed to be prepared for this, but it still hurts."
Asked if she could come back in her next two events, she said: "Hopefully. I've got a few days to reset.
"Obviously it's still almost a week until my best distance, so that's a positive.
"Right now, I just can't see living with this feeling. It's out of my control. I got knocked over and that's that."
More from Pyeongchang
Teen sensation Chloe Kim claimed snowboard halfpipe gold.
Kim, whose parents emigrated to the United States from Seoul in 1982, scored 98.25 - 1.75 short of perfect - for her third and final run to clinch gold.
China's Liu Jiayu was second with a best score of 89.75 and Arielle Gold took bronze with 85.75.
Kim's USA team-mate Shaun White led the way in qualifying for the men's equivalent with 98.50.
Australia's Scotty James scored 96.75 and Ayumu Hirano of Japan, who scored 95.25. The final takes place on Wednesday.
Canada won the mixed doubles curling, beating Switzerland 10-3 in the final. The Olympic Athletes of Russia pair took bronze.
The men's 1,500m long-track speed-skating event was won by Kjeld Nuis of Holland, with his team-mate Patrick Roest second.
Sweden's Stina Nilsson won the women's cross-country skiing sprint classic, with Norway's Johannes Hoesflot Klaebo winning the equivalent men's event.
The women's luge was won by Natalie Geisenberger of Germany.
Related links
